Canadian pension fund in UK 'aggressive tax avoidance' row
A top Canadian pension fund, with significant investments in Britain, has been urged to clean up its act over claims that it is engaged in 'aggressive UK tax avoidance'.
The call has come from Unite, the UK's largest union, to the Canada Pension Plan Investment Board (CPPIB) which has £5.9 billion of its portfolio invested in the UK.
The issue is highlighted by the fact that a top CPPIB executive is addressing a Responsible Investor (RI) Europe conference in London today (Wednesday 4 June).
Unite general secretary Len McCluskey has written to the chair of the CPPIB board of directors Robert Astley to express his concern about CPPIB's 'apparent role in avoiding payment of UK corporate taxes'
Len McCluskey quotes a report by United Voice – Unite's Australian sister union which states that Westfield Stratford City Shopping Centre - Europe's largest - has an effective corporate tax rate of 0.5 per cent.
CPPIB and its Dutch pension fund's 50 per cent interest in this complex is held in the offshore tax havens of Jersey and Guernsey.
Other UK companies in which CPPIB has large stakes include Alliance Boots, Anglian Water Group and telecommunications infrastructure company, Arqiva.
Len McCluskey said:
“Tax dodging by those who can afford to pay and by those who benefit from public expenditures may be legal, but it is morally unacceptable.
“While tax minimisation by multinationals has unfortunately become the norm, we are deeply concerned to learn about the role of a major government pension fund being complicit in a significant tax dodging scheme.”
Len McCluskey urged CPPIB 'to lead the way' in supporting a global policy of fair tax payments – a move that would have the support of the 18 million Canadians contributing to CPPIB's funds.
Eric Wetlaufer, senior vice president at CPPIB, will be speaking at the RI Europe conference today at the Tower Hotel, St Katharine's Way, London E1W 1LD.
